Blocking China's chip industry will raise costs, warns founder of TSMC

Robert Besser
19 Mar 2023, 13:58 GMT+10

The founder of chip manufacturer TSMC, Morris Chang, said that he supports the efforts of the US to slow China's advances in the semiconductor industry.
Asia's most valuable listed company and a major Apple supplier, TSMC is widely regarded in Taiwan as the "sacred mountain protecting the country," due to its economic importance.
Chang, 91, said, "There is no question in my mind that, in the chip sector, globalization is dead. Free trade is not quite that dead, but it is in danger."

TAIPEI, Taiwan: The founder of chip manufacturer TSMC, Morris Chang, said that he supports the efforts of the US to slow China's advances in the semiconductor industry.

However, he stressed that prices would increase and the availability of the wide variety of chips that power the modern world will decline due to the "bifurcation" of the global supply chain and the reversal of globalization.

At an event hosted by Taiwan's CommonWealth Magazine, Chang, 91, said, "There is no question in my mind that, in the chip sector, globalization is dead. Free trade is not quite that dead, but it is in danger."

"When the costs go up, the pervasiveness of chips will either stop or slow down considerably. We are going to be in a different game," he added.

Asia's most valuable listed company and a major Apple supplier, TSMC is widely regarded in Taiwan as the "sacred mountain protecting the country," due to its economic importance.

In recent years, China has applied more diplomatic and military pressure against Taiwan, which Beijing views as its territory.

At the same time, Taipei is in a predicament regarding US efforts to boost chip manufacturing locally or in allied countries.

In 2022, TSMC began construction of a second chip factory in Arizona that uses advanced technology, which will begin production in 2026, bringing it total investment in the US to $40 billion.

In response, the Chinese government has invested billions in the country's chip sector, but Chang said China's chip manufacturing technology lags behind that of Taiwan by "at least five or six years."

Watch latest videos

News RELEASES

Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Perth Herald.

More Information

25 ℃

Fair in Perth

International Business

Section

US loans $300 billion to banks following closing of SVB bank

WASHINGTON D.C.: The US Federal Reserve Bank has announced that cash-strapped banks throughout the US borrowed some $300 billion during ...

Deloitte agrees to pay $31 mln fine to China after mistakes in audit

BEIJING, China: Following the inability of China Huarong Asset Management Co Ltd to release financial reporting obligations in 2020, China ...

SpaceX, Netflix, Boeing join largest US business mission to Vietnam

HANOI, Vietnam: SpaceX, Netflix and Boeing will join what is described as the "biggest-ever" U.S. business mission to meet in ...

After winning Apple contract, Foxconn to build factory in India

TAIPEI, Taiwan: Reuters reported that after winning an order to manufacture wireless AirPods earphones for Apple for the first time, ...

Blocking China's chip industry will raise costs, warns founder of TSMC

TAIPEI, Taiwan: The founder of chip manufacturer TSMC, Morris Chang, said that he supports the efforts of the US to ...

Russia plans to take over Toyota's St. Petersburg plant, says TASS

MOSCOW, Russia: State run news agency TASS has reported that Russia's Industry and Trade Minister Denis Manturov said that Japanese ...

Australia

Section